Jim Cramer's Mad Money In-Depth Stock Picks, Nov. 29

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday November 29. Click on a stock ticker for more analysis:

All About Money Managers with: Exxon (XOM), Boeing (BA), Bank of America (BAC), Apple (AAPL), Cisco (CSCO)

Cramer says that the only people who have an idea of how the market really works are money managers, that "the market" is an illusory concept and the way mutual funds behave has more effect on a stock than a company's fundamentals. He explained that mutual funds make profits from fees and buy "relentlessly over time." Since it takes a while to build a position, it is not difficult see a return from a stock even though it has already gone higher. Also, Cramer stresses that "symbolism is incredibly important if you're running a mutual fund," and since a diversified portfolio needs oil, mutual funds include Exxon as "just a stock that symbolizes oil." Other "annointed" stocks are BA, BAC, CSCO and AAPL. "Mutual funds decide where stocks go in the short term, not you, and if you know how they think, you will have a major edge," Cramer said.

Overrated Exxon (XOM), Chevron (CVX) and ConcoPhilips (COP)

Cramer deplores Exxon's "miraculous irrational rally" because it is "the worst oil company out of the bunch" since it "doesn't believe in oil ... and it shows by how little it's spending on oil drilling, compared with buying back stock," he said. However, Cramer reluctantly notes that Exxon is a buy because mutual funds include it as their token oil stock. Cramer is "nauseated" with the stock also because of its exposure to Venezuela and Indonesia, and because its leases to drill were recently rejected by the state of Alaska. Nevertheless, Exxon was up 150 points on "Black Monday" when the market was stalled. This was not entirely due to the rising price of oil, since Chevron and ConcoPhilips would have rallied as well. The only thing that could make XOM decline is a cessation of buying among mutual funds, but Cramer doesn't think that will happen in the near future, and suggests that viewers "go rent some until the year-end before it hits $100."

Related: Birinyi's Ticker Sense notes that while the performance of XOM has reflected the price of oil, recently XOM and the price of oil have taken divergent paths.

Mad Mail: Arena Pharmaceuticals (ARNA)

Cramer explained that stocks hit bottom six to nine months before the decline is reflected in the stocks, and predicted that the housing recession will stop when the Fed starts cutting interest rates, but cautioned "if you're waiting around for the numbers to go up, you will miss most of the move." On another note, he regrets having recommended ARNA because he was "severly disappointed" with its performance.

Related: On Nov. 2, Cramer did a 'mon back on Arena.

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